Energy Market Access:
New Market Realities
of the Natural Gas Landscape
The International Economic Forum of the Americas
Current Energy Mix in Japan
Renewable
etc.
Oil
LNG
Coal
Nuclear
Source : METI
Copyright MITSUI & CO., LTD. All rights reserved.
Different Pricing for Each Market
Source : METI
Copyright MITSUI & CO., LTD. All rights reserved.
Fuel Import Cost Heavily Impacts Japanese Economy
Changes in trade balance and current account balance
（trillion yen）
（trillion yen）
30
Trade balance
Current account balance
25
20
15
10
5
0
-5
Trade deficit (2013)
11.5 Trillion yen
-10
Source : METI
-15
2007
2008
2009
Copyright MITSUI & CO., LTD. All rights reserved.
2010
2011
2012
2013
LNG Supply/Demand Outlook (Japan)
Demand
mtpa
95
90
85
80
Supply
75
70
65
60
Existing Project
(Extension or not)
55
50
45
40
35
New Project
(Contracted)
30
25
20
15
10
Existing Project
(Contracted)
5
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Source : Mitsui’s Estimate
Copyright MITSUI & CO., LTD. All rights reserved.
LNG Supply/Demand Outlook ( Worldwide )
（mtpa）
700
600
WoodMackenzie(参考)
WM demand estimate( Reference )
500
400
Possible
Potential
300
Under Construction
200
Firm
100
Operational
0
Source : Wood Mackenzie
Copyright MITSUI & CO., LTD. All rights reserved.
Major global gas trade flows in future
Canada
Source: IEA, World Energy Outlook 2012
Copyright MITSUI & CO., LTD. All rights reserved.
Canadian LNG – Expectations and Advantage
e.g. ) Pricing Formula / US Sabine Pass & Corpus Christi
< Expectations from potential Japanese buyers >
 Price Competitiveness
LNG Price
(US$/mmbtu) 115% of Henry Hub + FF
Fixed Fee (FF)
(US$/mmbtu) 2.25 - 3.50
Contract Term
20 years
Canada
 Flexibility of pricing formula
 Diversification of LNG supply source
< Advantages >
 Significant gas reserves
 Strong governmental support
 Proximity to Japan
 Free from Panama Canal passage
Copyright MITSUI & CO., LTD. All rights reserved.
Voyage to Japan
Sakhalin
3 days
Alaska
9 days
NWS (Australia)
10 days
Western Canada
10 days
Qatar
14 days
Mozambique
20 days
US Gulf Coast
26 days
Mitsui’s Oil and Gas Business - Gas Value Chain Exploration
&
Production
Liquefaction
Blocks in
■Australia
■New Zealand
■Thailand
■Cambodia
■Vietnam
■Indonesia
■Oman
■UAE
■Qatar
■Russia
■Libya
■Mozambique
■Poland
■USA (Shale)
■Canada
■UK
■Italy, etc
■Sakhalin-II/Russia
■ADGAS/Abu-Dabi
■Qatargas1&3/Qatar
■Oman & Qalhat LNG
/Oman
■NWS/Australia
■Equatorial Guinea
■Tangguh/Indonesia
Copyright MITSUI & CO., LTD. All rights reserved.
Transportation
LNG
Receiving
Terminal
Distribution
■Malhas PL/Brazil
■Manzanillo/Mexico
■Qatargas/1 vessel
● Blue Stream/Russia
■Montoir/France
■RasgasⅡ･Ⅲ
● Cabiunas/Brazil
(Capacity
Usage)
/9 vessels
■Mitsui Gas (LDC)/
■Snohvit/2 vessels
Brazil
■CPC/4 vessels
■Angola LNG
■ Equity Investment Project
/4 vessels
(or tanker owned by Mitsui)
■Kyushu Electric Power
● EPC/finance
/1 vessel
■Spot LNG fleet
/4 vessels
(total 25 vessels)
Power Generation
&
Gas Chemical
Gas Power Generation
■ MT Falcon,Valladolid/
Mexico
■Saltend/UK
■Eco Electrica/Puerto Rico
■Ontario/Canada
Gas Chemical
■International Methanol
Company/Saudi Arabia
■Celanese Methanol / USA
■Kaltim Pasifik Amoniak/
Indonesia